AI Stocks Poised for Recovery: Nvidia, AMD, Broadcom, TSMC

AI Stocks Set for Bull Run. The market correction is seen as temporary, with Taiwan Semiconductor, Nvidia, AMD, and Broadcom identified as top picks for recovery in 2025 as they are positioned favorably in the AI market, offering potential significant growth post-sell-off.

Date: 20-03-2025

AI Rating: 7

The report highlights the recent market correction that has primarily impacted artificial intelligence (AI) stocks, particularly Nvidia, AMD, Broadcom, and Taiwan Semiconductor Manufacturing (TSMC). According to the analysis, this downturn is nearing its end, and the mentioned stocks are proposed as strong candidates for considerable gains through 2025.

Nvidia has demonstrated remarkable performance, with expected revenue growth of 65% for the first quarter of fiscal year 2026, driven by high demand for its advanced AI technology. The company’s data center revenue stands at $35.6 billion with an impressive year-over-year growth rate of 93%. These figures indicate robust earnings potential, which could positively influence its stock price.

AMD, on the other hand, reported a slower growth trajectory with data center revenue at $3.86 billion and a 69% growth rate. Despite not matching Nvidia’s pace, AMD is expected to grow over 20% in revenue during 2025 and 2026. While this growth is respectable, it still presents a more cautious investment case compared to Nvidia.

Broadcom contributes to the competitive landscape with its custom AI accelerators called XPUs. It anticipates significant growth with the serviceable addressable market for XPUs projected to reach between $60 billion to $90 billion by 2027. Broadcom's existing AI revenue of $12.2 billion out of $54.5 billion total revenue underscores its potential for growth in this segment.

TSMC is crucial as the manufacturer for Nvidia and AMD. The report cites an expected growth rate of 45% for AI-related chip revenue over the next five years, affirming TSMC's strategic position benefitting from the rise of AI technology and chip demand. However, this competitive ecosystem limits TSMC’s upside as it is reliant on its clients’ performance in the AI arms race.

Overall Summary: The report presents optimistic forecasts for Nvidia, AMD, Broadcom, and TSMC, which could benefit significantly from the rebound in AI markets. Investors could see these stocks as favorable opportunities to invest, particularly given the expected increases in revenue and related sectors.

Stocks: NVDA AMD AVGO TSM